Port Moresby is the capital city of Papua New Guinea and is the administrative, commercial and educational centre of the country. It has a population of a little over 400,000 with an average density of 16 persons per hectare. It developed based on its historical and strategic considerations. The main economic activities in Port Moresby are in the service industry.
The unemployment rate in Port Moresby is high with more than 50 percent of the unemployed in settlements and urban villages. Most of these people participate in some form of informal sector activities. 60 percent of the total land area in Port Moresby is alienated or state land while 40 percent is under customary ownership. The availability of basic urban services like water, energy, sewerage network, and sanitation and refuse collection is varied between the formal areas and the informal and settlement areas. While formal areas are often serviced, some people who live in settlements often resort to illegal means to access basic services.
Public transport needs improvement and the existing road network is poorly maintained particularly in the suburbs and the informal settlements. Health care and education facilities although available are sometimes run-down and poorly resourced. Port Moresby is set to expand due to its strategic location and strong trade agreements with its neighbouring countries in the Asia Pacific region.